✅ New to options trading? Master the essential options trading concepts with the FREE Options Trading for Beginners PDF and email course: https://geni.us/options-trading-pdf ✅ Sign up with tastytrade: https://geni.us/tastytrade ==== Put options are one of the two primary option types, with call options being the other. In this video, I explain the basics of put options in great detail, covering: - What are put options? - Intuitively understanding why put option prices change inversely to the stock price - Put option intrinsic and extrinsic value explained with a real AAPL option - How put option buyers make and lose money - Two trade examples of put option purchases (profitable and unprofitable) - Live demonstration of buying a put option on the tastyworks trading platform - How put option sellers make and lose money - Two trade examples of shorting put options (profitable and unprofitable examples) - Live demonstration of shorting a put option on the tastyworks trading platform I realize I did not talk about exercising put options in this video, and that's because options are rarely exercised due to the loss of extrinsic value when exercising an option. Instead, options traders buy/sell options with the intent of profiting from the price changes of the option contracts, and have no intention of ever exercising the options to convert them into shares. Be sure to leave a comment down below with any questions you may have! === RECOMMENDED VIDEOS/RESOURCES === CALL OPTION BASICS EXPLAINED: https://youtu.be/fUZHmJAvN30 BULL PUT SPREAD STRATEGY: https://youtu.be/fSMCL5U9M-I BEAR PUT SPREAD STRATEGY: https://youtu.be/-IIRUXrOhD8 Why Early Exercise/Assignment is Rare: https://www.youtube.com/watch?v=7pTb1a5IgKM Options Trading For Beginners (PLAYLIST): https://www.youtube.com/playlist?list=PL33AZa4cv-o58ldr-5zSn4ROx4SZG7Jyo tastytrade Tutorials (PLAYLIST): https://www.youtube.com/playlist?list=PL33AZa4cv-o56a2BO3jpK_PBUFe3FdvxP Option Pricing EXPLAINED: https://youtu.be/-nnJ4pMBaxA Options Trading 101: https://youtu.be/3bELT5FZCic tastytrade, Inc. (“tastytrade”) has entered into a Marketing Agreement with Project Finance(Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’ brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade and/or any of its affiliated companies. Neither tastytrade nor any of its affiliated companies is responsible for the privacy practices of Marketing Agent or this website. tastytrade does not warrant the accuracy or content of the products or services offered by Marketing Agent or this website. Marketing Agent is independent and is not an affiliate of tastytrade.